Social Care and Concern | Sino-American Silicon Products Inc.

Corporate Responsibility Practice

Human Rights Policy

SAS upholds a core philosophy and value of respecting employees and implementing a humancentric approach. This involves adhering to laborrelated laws, protecting employee rights, giving voice to employees , promoting labor-management harmony, ensuring gender equality, and preventing harassment or discrimination. Supply chain partners are required to apply the same standards in their operations, complying with local laws and supporting the spirit and fundamental principles of international human rights conventions such as the Universal Declaration of Human Rights, the United Nations Global Compact, and the International Labour Conventions.
For more information on our human rights policy, please refer to the SAS company website.

📌 Policy Goals

⦿ Continuing to create opportunities for achieving diversity, inclusiveness, and equality and prohibit any forms of discrimination (including on the basis of gender, genderorientation, race, class, age, marital status, language, thought, religion, political party, place of origin, place of birth, appearance, facial features, disability, etc.)

⦿ Prohibiting forced labor and child labor

⦿ Creating a safe and healthy work environment

⦿ Providing fair and reasonable salary and working conditions

⦿ Providing avenues and environment for freedom of expression and respecting employees’ freedom of association

Talent Recruitment and Human Resources

SAS (headquarter & Chunan, Yilan, Hsu-Hsin branches) and GlobalWafers had 7,927 employees in 2023. SAS has a total of 622 employees. Based on gender, men accounted for 72.8%, and women accounted for 27.2%. Based on age, 5.0% are under 30 years old, 70.3% are 30-50 years old, and 24.8% are over 50 years old. Based on the work area, Hsinchu accounted for 6.1%, Chunan accounted for 26.5%, and Yilan accounted for 67.4%. Based on job attributes, direct personnel account for 56.1%, and indirect personnel account for 43.9%. Based on employment type, regular employees account for 100%, and informal employees account for 0%. Based on employment contracts, fixed contracts accounted for 0.2%, non-fixed contracts accounted for 99.8%, and employees requiring visas accounted for 0.2%.

Hiring Locals and People with Disabilities

Based on its commitment to social care, SAS cooperates with government policies on employing persons with disabilities and employs individuals with disabilities in compliance with legal requirements. As of 2023, the Company employs 9 individuals with disabilities, accounting for 1.4% of the workforce, fostering an inclusive and diverse work environment..

Supervisor

Regarding management level, the total number of SAS supervisors is 83, of which 71.1% are males and 28.9% are females. Regarding management ranks, there are 50 individuals in senior and mid-level management positions (manager and deputy manager levels and above) and 33 individuals in entry-level management positions (section manager level and above but below the manager level).

New Recruits and Leaving Employees Statistics

In 2023, SAS and GlobalWafers had 649 new employees. By gender, new male employees accounted for 6.1% of the total workforce at the end of the year, while new female employees accounted for 2.0%. By age, new employees <30 years of age accounted for the highest percentage at 4.4%, followed by those aged 30-50 at 2.9%. In 2023, the number of resigning employees was 785. By gender, male employees who resigned accounted for 7.3% of the total workforce at the end of the year, while female employees accounted for 2.6%. By age, employees aged 30-50 who resigned accounted for the highest percentage at 4.7%, followed by those <30 at 3.7%. When employees submit their resignation letter, the HR department would immediately schedule an exit interview to understand reasons for the resignation. This also enables the HR department to provide active assistance in adjustments and detailed explanations with regard to work contents, personal characteristics, and identified problems to achieve the goal of talent retention. In addition, the Group will announce internal recruitment information when there are vacancies, taking into account the career development needs of the organization and individuals and enhancing the transfer of internal talents to reduce the turnover rate.

Salaries and Benefits

Remuneration policies

To attract and retain talented individuals, SAS offers competitive compensation and benefits. Each year, the Company sets annual salary adjustment standards based on factors such as the Company’s operating performance, industry-wide salary adjustment rates, inflation index, and employee performance. To ensure fairness, employee compensation is determined based on jobrelated criteria such as position, seniority, and professional abilities, ensuring equal pay for equal work and avoiding discrimination or disparities based on gender, age, or other conditions.
In addition, compensation is provided in accordance with the profitability of the company to increase employee cohesion, motivate employees to exceed annual business goals, create profits, and share joint achievements. Promotion recommendations are submitted on an annual basis based on work performance and contribution appraisals. We hope our employees feel that SAS is committed to sharing the company’s success with everyone and maintaining strong relationships. This approach aims to enhance unity and a sense of belonging, fostering a culture of proactive growth and creating a desirable work environment for professionals.

Benefits System

SAS aims to continuously support the well-being of our employees by providing six key protections at all operational sites for full-time staff: life insurance, medical insurance, disability insurance, parental leave, retirement plans, and employee stock ownership trusts.
These basic protections enable employees to focus their passion on their work while being willing to grow with the Company. In addition, at our Taiwan plants, we provide employee labor and health insurance, labor retirement and group insurance, an employee meal subsidy, annual travel subsidy, employee health exams, gifts for three major festivals and birthday, wedding and funeral subsidies, hospitalization subsidies for injuries and illnesses, club activities subsidies, education and training subsidies, on-site physicians, cancer condolences, epidemic prevention protection measures, vaccine subsidy, employee stock ownership trusts, workplace psychological counseling, and other related benefits to help employees reach a balance between work and life.

Insurance and pension system

In addition to the legally mandated labor and health insurance system, SAS offers each employee group insurance that exceeds labor law requirements. The coverage includes term life insurance, accidental injury insurance, aviation accident insurance, major burns insurance, medical injury insurance, hospitalization medical insurance, cancer insurance, and epidemic prevention insurance. We aim to provide comprehensive protection to maintain the safety and health of employees.
In accordance with the Labor Standards Act, employees eligible under the old labor pension system have 2% of their monthly salary allocated to a retirement reserve fund, which is deposited into a retirement reserve account at the Bank of Taiwan. At the end of the year, the full amount of the retirement fund is allocated as required by law. The aforementioned Labor Pension Reserve Supervisory Committee not only holds quarterly meetings and oversees labor pension-related matters as required by law but also conducts an annual pension actuarial assessment through a professional actuarial consulting firm. This ensures sufficient funds are allocated to the retirement fund, safeguarding employees’ future pension entitlements.
For employees eligible under the new labor pension system, the company allocates 6% of their monthly salary to their individual accounts with the Bureau of Labor Insurance.

Application for Leave Without Pay

At Sino-American Silicon Products Inc., the categories for applying for leave without pay include military service, major illness or injury, and parental leave. Employees who have been with the company for at least 6 months and have children under the age of 3 are eligible to apply for parental leave without pay, ensuring that their family care needs are met and their children receive the best possible care.

Employment meals

SAS provides free meals for its employees during working hours in staff restaurants. The goal is to provide a comfortable dining environment and diverse meal choices to cater to staff members’ different culinary demands. A restaurant monitoring task force has been established to ensure the meal quality and nutritional value and implement staff health and catering controls..

Welfare Committee System

The SAS Employee Benefits Committee was established in 1988 to actively strive for employee benefits and welfare measures, including emergency relief and first-time cancer relief, to help those in the face of drastic changes in life to survive the hardship. Cash compensation is also given to those getting married, giving birth, and processing funerals. Festival and birthday gifts in the form of cash, education scholarships, illness & hospitalization subsidies, concessions in designated shops are also provided, plus regular outings, year-end parties, and sponsorship for social welfare organizations, sporadic family days, to which all staff members and their families are invited in order to build cohesion and identification with the Company. The goal is to inspire colleagues and family members to understand the Company’s operations better and promote family harmony. Establish employee associations to improve colleagues’ physical and mental health, promote proper entertainment, cultivate teamwork, and inspire the spirit of mutual assistance and sincere exchanges between colleagues. Hold irregular beach cleaning activities to contribute to society and make the natural environment cleaner. Add audio-visual facilities to improve the quality and comfort of employees’ dining environment.
During the COVID-19 period, the spring and autumn employee travel was replaced by gift voucher issuance. This alternative solution can reduce unnecessary personnel movement and gathering while subsidizing the employees’ daily necessities. The Company has also established a vaccination reward system to encourage employees to vaccinate against COVID-19. Each year, the Company also fully subsidizes employees who voluntarily receive the flu vaccine.
In 2023, the annual subsidy expenses reached NTD 9.67 million, and the average employee subsidy was NTD 15,000. Throughout the year, more than 20 new babies were born to employees, with a birth rate exceeding 4%, surpassing Taiwan’s average birth rate of 1%. The autumn employee trip saw participation from over 400 employees and their families, totaling more than 800 people, with an attendance rate of over 65%.

Education and Training

All-round Learning Environment and Development

To improve our employees’ skills and attainments, we have established education and training management regulations as the basis for implementing education and training programs. These programs are conducted annually through internal instructors, external lecturers, and external training sessions. With the easing of the pandemic, training has gradually resumed in-person classes and online courses, enabling employees to enrich their professional knowledge and foster continuous growth. Each department plans the following year’s training programs in line with the company’s annual operational goals, departmental KPIs, and competency needs. At the end of each quarter, the training courses conducted are reviewed and evaluated to ensure effective employee skill development. This approach enhances employee efficiency and competitiveness while aligning personal growth with the Company’s sustainable development goals.
SAS has established an E-Library Academy to allow employees to read and review training materials at any time. The stored data covers a wide range of diverse topics and is easily accessible to busy staff members, thereby creating a reading culture in the company. The Academy also offers training materials for every professional field, allowing employees interested in cross-disciplinary learning opportunities for self-study and rapid personal growth. SAS firmly believes that continuous learning leads to continuous improvements in overall company operational performance. The total training development hours for SAS and GlobalWafers in 2023 is 208,764.7 hours.
For SAS, our plants’ average hours of education and training for men and women according to gender are 28.2 hours and 28 hours, respectively. Based on employee classification, the average hours of education and training received by direct and indirect personnel are 23.7 hours and 33.9 hours, respectively.

SAS has established an E-Library Academy that furnishes employees with reading and exercise training materials whenever they have a need for it. The Academy offers a wide range of collections that are easily accessible to busy staff members, thereby fostering a reading culture in the company. It also offers training materials for various areas of expertise, granting self-improvement and personal growth opportunities for employees who have an interest in interdisciplinary learning. SAS firmly believes that continuous learning leads to continuous improvements in the company’s overall operational performance. In 2022, SAS and GlobalWafers devoted 186,322.4 hours of training in talent development.

In terms of gender, men and women at SAS spent 31.4 and 29.5 hours on education and training, respectively; based on type of employee, direct and indirect personnel spent an average of 28.0 and 35.8 hours on education and training, respectively.

Talent cultivation

SAS plans its annual education and training programs each year based on its operational strategy and short-, medium-, and long-term goals. The Company emphasizes the transfer of technology and talent development by offering a variety of training courses, academia-industry collaboration, and research projects for our staff members to stay tuned to realtime global political and economic trends and status and technology updates while supplementing the training with job substitutes, job rotation, and on-the-job training to strengthen the different professional capacities of our employees. We provide diverse training resources through a comprehensive training system that includes six major areas: New Recruits Orientation Academy, General Administration Academy, Management and Business Academy, Professional Core Academy, Environmental Health and Safety Academy, and Health Promotion Academy. The goal is to provide employees with appropriate training courses at different stages of career development; enable the Company and colleagues to adapt to the rapid changes in world trends; and help everyone to keep abreast of the latest knowledge, technology, and skills. To promote the Company’s learning culture and encourage employees to fully utilize their expertise and training resources, the Company has established “Regulations for Internal Lecturer Management,” implementing the Company’s knowledge management and technology inheritance and consolidating core competitiveness.

Workplace Health and Safety

Safe Workplace

Occupational health and safety management system and its policycommitments

SAS values the expectations of stakeholders, management, and employee participation. We have implemented an Occupational Health and Safety Management SystemNote, ensuring that occupational health and safety (OHS) is no longer regarded as an independent operation but is viewed from the perspevtive of operation soundness and sustainability. We adhere to ISO 45001:2018 and ISO 14001:2015 to establish our environmental, health, and safety policies, which are signed by the highest level of management (Chairperson) and published on the Company’s internal information portal, purchase orders (or other external documents), and the company website to communicate our commitment to stakeholders in achieving the goals of “providing a safe and healthy working environment, fulfilling environmental protection responsibilities, and promoting green operations.” To fulfill this commitment, we have established several management procedures to prevent or mitigate workplace hazards or health impacts and have provided internal and external communication channels to collect and listen to stakeholders’ opinions. Relevant management explanations are provided in subsequent chapters.

Note:

1. The sites covered by the Occupational Health and Safety Management System include the SAS headquarters, Chunan, Yilan, and Hsu-Hsin branches. These sites account for 100% of SAS employees (622 people) and 31.4% of non-employees (86 people).

2. Among the sites the system manages, the Chunan and Yilan branches of SAS regularly conduct internal audits, which are verified by third-party units. These sites account for 91.0% of SAS employees (566 people) and 31.4% of non-employees (86

people).

Occupational health and safety organizations

According to law, SAS has established the Occupational Health and Safety Committees in each plant area. Their purpose is to hold regular quarterly meetings, which shall be chaired by the president or presided over by the vice presidents of each plant, and all department heads and
labor representatives must participate in these meetings. The meetings shall discuss occupational safety and health management plans, work environment measurement improvement and countermeasures, occupational safety and health education and training, occupational safety and health auditing, occupational safety and health management performance, accident awareness and prevention, health management, and promotion, etc. The matters discussed in the meetings must be recorded, and the improvement and completion rates must be tracked.

Occupational safety management

SAS is well aware of the importance of operating environment safety. The on-site management by supervisors at all levels is responsible for strengthen discipline and autonomy of the employees, enhance the employees’ safety awareness, and establish a corporate safety culture.

Annual Hazard Identification and Risk Assessment
Annual Emergency Response Drill (fire/chemical disaster/plant-wide evacuation)
Health Hazard Risk Management
Chemical Hazard Management
Change Management
Procurement Management
Other Prevention and Mitigation of Occupational Health and Safety Impacts Related to Operations, Products, or Services
Workers’ Consultation and Communication
Contractor Management
Occupational Health and Safety Education & Training

SAS devises EHS education and training plans with reference to employee feedback, management system requirements, and external issues. EHS training applies to new and existing employees, managers of all levels, and contractors and serve to raise workers’ awareness of occupational safety, health, and compliance, and foster response capability.As stipulated by law, our operators of machinery and equipment, supervisors in charge of operations, persons in charge of occupational safety and health, and first-aid personnel have all completed training and obtained relevant certification.

In addition to the general safety and health education and training, hazardous materials/hazardous materials operation safety, contractor safety and health management, special operations in the factory, operation safety in confined spaces, and management system form evaluation personnel annual trainings; a series of emergency response training courses have also been held in response to external topics.

Incident Investigation and Correction

According to the iceberg effect based on Frank E. Bird’s accident frequency, among the 1.75 million industrial disaster accident cases, every 641 incidents include 1 disabling injury accident, 10 minor injury accidents, 30 financial loss accidents, and 600 false alarm accidents. Accordingly, the occurrence of occupational disasters is only the tip of the iceberg. American scholar Heinrich studied the direct causes of occupational safety and health accidents from insurance industry’s occupational accident claims database. He found that 88% of accidents are caused by unsafe behavior, 10% are caused by unsafe environments, and 2% are caused by unpreventable factors. Therefore, 98% of accidents can be prevented through management measures.
SAS has established incident notification, handling, and investigation procedures, as well as for managing nonconformity
correction measures. We have also promoted incident notification and emergency rescue procedures (including government/medical institution instant messages and emergency chemical spill handling) on our intranet platforms – the “Environmental Safety Area” and “Health Area.” All incidents, regardless of severity, must be investigated. Investigators include incident-related management, supervisory, operating personnel, as well as labor representatives who are qualified through incident investigation education and training. Incident investigation should focus on finding the root cause of the incident. The hazard risk assessment, along with remedial and improvement measures, must be reexamined and adjusted to ensure the improvement measures can eliminate the cause of the accident and prevent its recurrence. Safety and health personnel must track and review all such cases. If any immediate danger at workplace is discovered, the worker can stop the operation and retreat to a safe location on his/her own without endangering the safety of other workers, and immediately notify the on-site supervisor without receiving any unfavorable punishment from theCompany.

Health Promotion and Care

Employee health is critical for a company to build and strengthen its competitiveness. SAS has established health centers in all of its plants, staffed with full-time nurses and specially appointed physicians. These centers provide various health care services for employees, track and manage health issues, and offer referral or medical services.
Furthermore, SAS continues to prioritize five major pillars: maternity protection, prevention of overloading, prevention of unlawful infringement, health protection for middle-aged and elderly employees, and prevention of human factor injuries. These initiatives aim to safeguard the physical and mental well-being of our employees. Through various healthcare programs, health seminars, and a wide range of health promotion activities, SAS was awarded the CHR Health Corporate Citizen Certification by Common Health Magazine in 2023, striving to set a benchmark for a healthy and happy workplace.

Human-induced Injury Prevention

SAS plants have established human-induced hazard prevention procedures. The goal is to adopt employee injury surveys and questionnaires, and provide a ranking matrix according to the human hazard risk assessment survey results. When the risk ranking level is ≧ 4, a target improvement plan must be established. In 2022, Chunan and Yilan plants each implemented one risk-related improvement.

Health promotion and reinforcement of health concepts

SAS embraces the concept of diversified employee healthcare. Annual health management plans are formulated based on employee health check reports, addressing relevant needs and outlining improvement strategies to maintain employees’ physical health. Additionally, SAS provides customized health checks that consider the varying physical demands of different operational roles. These health check items and frequency exceed legal requirements and include free cancer screenings (colon, cervical, breast, and oral cancer) in conjunction with hospital services, ensuring a thorough understanding of employee health conditions. Following health checks, professional on-site medical personnel conduct follow-up tracking for any abnormal results. This data serves as a key reference for health improvement activities and health promotion initiatives.

SAS promotes various health promotion activities, including cancer screenings, health lectures (such as “Spoiling Eyes – Eye Care Knowledge,” “A Healthy Day for People Who Eat Out,” and “Defeating the Potential Killer Twins – Hypertension and High Cholesterol”), blood donation drives, emergency rescue courses, weight loss activities to combat abdominal obesity, and fitness exercise classes. These activities aim to establish correct health knowledge among employees and enhance their healthcare awareness. In 2023, a total of 3,357 participants took part in these activities. To further strengthen the employees’ health awareness, the Company irregularly announces and shares critical illness or health information, enabling colleagues to gain a comprehensive understanding of health topics and enhance their self-care and weight management knowledge. Free flu vaccines are provided to employees to help them prevent infectious diseases (such as influenza). The company also offers comprehensive vaccine consultation services and convenient in-plant vaccinations to ensure staff health and create a safety net.

Health management measures such as one-on-one counseling with physicians, individual health education guidance, and work pattern adjustments are adopted to minimize risks for identified groups.
Convenient blood pressure self-check stations have been established in the company to allow employees to measure their blood pressure conveniently.
Company has established a 24-hour automatic external defibrillator (AED) in the plant, and arranged for the employees to participate in the CPR+AED education and training.
Receive the Safe Place Certification by the Ministry of Health and Welfare.
Pregnant colleagues can enjoy a convenient and safe working environment during pregnancy.(special parking spaces/comfortable breastfeeding space/ childbirth subsidies/sign exclusive contracts with special discount nurseries and kindergartens)
The health promotion activity and lecture topics for the year.

Physical and mental balance and a blissful workplace

SAS introduced the Employee Assistance Service (EAPC) to provide comprehensive care for employees. The service items include emotional management, interpersonal relationship, legal, work career, family parent-child, financial, and other diversified consultation services. Each employee can receive 2 free one-to-one consultation services every year.

Nurses will actively refer those with high scores on the mood thermometer questionnaire to EAPC and regularly track and care for the colleagues’ status. We also provide recruit training programs, contact description cards, and deliver psychological activity articles regularly. The goal is to help employees resolve and eliminate problems via professional counseling services and help them feel at ease and work with confidence.

The Company, through its Welfare Committee, organizes several staff outings annually to recharge employees and foster team cohesion. Family members are encouraged to participate, promoting bonding and camaraderie among employees, demonstrating care for their families outside of work, and enhancing work-life balance.
SAS values its employees’ voices. Various channels, including labormanagement consultation meetings, employee suggestion boxes, OSH committees, meetings on the old pension system, and a staff benefits committee, enable employees to express their views and opinions openly. Through meetings and discussions, employees can fully communicate their thoughts, creating an effective two-way communication channel between labor and management. This fosters mutually beneficial outcomes for all parties. Furthermore, the HR Department distributes monthly electronic newsletters featuring articles, columns, English learning sections, and information about events and health. These newsletters provide employees with opportunities to learn new things and participate in internal and external events, contributing to a healthy work-life balance and supporting their physical and mental wellbeing while fulfilling their work responsibilities. Sources and related content SAS also designates dedicated management personnel to assist and support foreign blue-collar migrant workers in their work and daily lives. Annual activities are organized to show continuous care for these employees and to understand their needs and concerns. This enables timely communication and assistance, ensuring they enjoy their work and have a fulfilling life in Taiwan.

Social Care

Charity and Public Welfare
•Donation to World Vision Taiwan-Rescue Turkey’s Syria Disaster Relief Assistance

In the early morning of February 6, 2023, a 7.8 magnitude earthquake struck southeastern Turkey, near the Syrian border, resulting in over 55,000 fatalities and leaving at least 850,000 children homeless. Given the severe earthquake disaster in Turkey and Syria and the difficult living conditions faced by the victims, SAS collaborated with World Vision Taiwan to launch an internal employee fundraising campaign. This initiative aimed not only to encourage employees to care for and pay attention to vulnerable groups in society but also to provide much-needed assistance to those affected by the disaster, helping them overcome their immediate challenges. The project supports World Vision Taiwan’s efforts to aid children and families affected by the earthquake in Turkey and Syria. It encompasses emergency relief in the immediate aftermath of the disaster and long-term recovery efforts, accompanying the victims as they heal from their trauma and embark on the road to recovery.

Syin-Lu Social Welfare Foundation Hsinchu Branch – Local Care and Early Intervention Therapist
Fundraising

According to statistics from the Ministry of Health and Welfare, since 2020, the number of reported cases of children aged 0 to 6 with developmental delays has exceeded 26,000 annually.
Research indicates that if children with developmental delays do not receive early assistance (such as medical rehabilitation and special education), they may become part of the population with physical and mental disabilities, which could burden their families and society. Providing necessary assistance to children with developmental delays often requires parents to spend significant amounts of money. In situations where social resources are insufficient, many children cannot receive the help and care they need. SAS upholds the principle of “taking from society, giving back to society” and aims to contribute to families and society. Recognizing that these children with developmental delays are not receiving the necessary assistance and proper care, SAS has partnered with the Syin-Lu Social Welfare Foundation to raise funds. Through donations, the goal is to support early intervention programs, alleviate the financial pressure on these families, and ensure that social welfare resources are sufficiently available to provide professional therapy. This initiative aims to support these families and children in need.

Miaoli Branch of Genesis Social Welfare Foundation-Local Care, Help the Equipment Update Program of Genesis Miaoli Nursing Hom

SAS Group has long been committed to assisting disadvantaged groups in society. The Genesis Foundation is the only social welfare organization in Taiwan that specializes in taking care of vegetative people. Since the general public has little knowledge about vegetative people, this part of the donation is relatively higher. Since it is difficult to raise funds, the Group collaborated with Genesis Foundation Miaoli Branch in 2022, to launch the “Guardian of the Family” fundraising activity to raise funds for daily meals for those in vegetative state and contribute to these people in a vegetative state and their families. In addition, Genesis Foundation Miaoli Branch has been established for more than 20 years, and a lot of the equipment in the hospital are outdated and in urgent need of replacement. Therefore, the Group actively invested and launched a fundraising activity in 2023 to meet these needs. Through these fundraising activities, we transform compassion into concrete actions, enabling vegetative patients to receive more comprehensive care.